P7-3A

A,B, and C

Sales (c) Prove the agreement of the 1 special P7-3A Selected accounts from the chart of accounts of Just-for-You Company are shown below: 201 Cash Accounts Payable 101 401 112 Accounts Receivable 120 Merchandise Inventory 412 Sales Returns and Allowances 126 505 Supplies Cost of Goods Sold 157 Equipment 726 Salaries Expense The company uses a perpetual inventory system. The cost of all merchandise sold is 60% of the sales price. During January, Just-for-You completed the following transactions: Jan. 3 Purchased merchandise on account from Bell Co., $18,900. + 4 Purchased supplies for cash, $80. 4 Sold merchandise on account to Gilbert, $7,550, invoice no. 371. - 5 Issued a debit memorandum to Bell Co. and returned $300 worth of damaged goods. 6 Made cash sales for the week totalling $3,150. 8 Purchased merchandise on account from Law Co., $4,500. 49 Sold merchandise on account to Mays Corp., $5,600, invoice no. 372. 11 Purchased merchandise on account from Hatch Co., $3,700. 13 Paid Bell Co. account in full. 13 Made cash sales for the week totalling $5,340. 15 Received payment from Mays Corp. for invoice no. 372. 15 Paid semi-monthly salaries of $14,300 to employees. 17 Received payment from Gilbert for invoice no. 371. 17 Sold merchandise on account to Amber Co., $1,200, invoice no. 373. 19 Purchased equipment on account from Johnson Corp., $5,500. 20 Cash sales for the week totalled $3,200. 20 Paid Law Co. account in full. 23 Purchased merchandise on account from Bell Co., $7,800. 24 Purchased merchandise on account from Levine Corp., $4,690. 27 Made cash sales for the week totalling $3,730. 30 Received payment from Amber Co. for invoice no. 373. 31 Paid semi-monthly salaries of $13,200 to employees. 31 Sold merchandise on account to Gilbert, $9,330, invoice no. 374. Just-for-You Company uses a sales journal, a purchases journal, a cash receipts journal, a cash pay- ments journal, and a general journal. Instructions (a) Record, in the appropriate journal, the January transactions. (b) Foot and cross-foot all special journals. (c) Show how postings would be made by placing ledger account numbers and check marks as needed in the journals. (Actual posting to ledger accounts is not required.)